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Correlation and Regression

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leon trinidad corre
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9 views27 pages

Correlation and Regression

Uploaded by

leon trinidad corre
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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C O R R E L AT I O N A N D

R E GR E S S I O N A N A LYS IS
OBJECTIVES:
• Draw a scatter plot for a set
of ordered pairs.
• Compute the correlation
coefficient.
Another area of inferential statistics
involves determining whether a
relationship exists between two or
more numerical or quantitative
variables.
• A businessperson may want to know
whether the volume of sales for a given
month is related to the amount of
advertising the firm does that month.
• Educators are interested in determining
whether the number of hours a student
studies is related to the student’s score on
a particular exam.
• Medical researchers are interested in
questions such as, Is caffeine related
to heart damage? or Is there a
relationship between age and blood
pressure?
• A zoologist may want to know
whether the birth weight of a certain
animal is related to its life span.
Our study of correlation and regression analysis
is to answer the following questions statistically:

1. Are two or more variables linearly related?


2. If so, what is the strength of the relationship?
3. What type of relationship exists?
4. What kind of predictions can be made from
the relationship?
SC AT T E R P LO T
• The independent variable is the variable in
regression that can be controlled or
manipulated.
• The independent variable is also known as the
explanatory variable
• The dependent variable is the variable in
regression that cannot be controlled or
manipulated.
• the dependent variable is also called the
response variable.
A scatter plot is a graph of the ordered
pairs (x, y) of numbers consisting of the
independent variable x and the
dependent variable y.
The data show the heights in feet and the
number of stories of a random selection of six
buildings in Chicago, Illinois. Construct a scatter
plot for the data.
COR R E L AT ION
Statisticians use a measure called the
correlation coefficient to determine
the strength of the linear relationship
between two variables.
The population correlation coefficient
denoted by the Greek letter ρ is the
correlation computed by using all possible
pairs of data values (x, y) taken from a
population.
The linear correlation coefficient
computed from the sample data measures
the strength and direction of a linear
relationship between two quantitative
variables. The symbol for the sample
correlation coefficient is r.
Pearson product moment correlation coefficient
(PPMC)

• The range of the linear correlation coefficient is from -1 to +1.


• If there is a strong positive linear relationship between the
variables, the value of r will be close to +1.
• If there is a strong negative linear relationship between the
variables, the value of r will be close to -1.
• When there is no linear relationship between the variables or only
a weak relationship, the value of r will be close to 0.
Compute the linear correlation coefficient for the data
Construct a scatter plot and compute the value or the linear correlation
coefficient for the data obtained in a study on the number of absences and the
final grades of seven randomly selected students from a statistics class. The
data are shown here.
Test the significance of the correlation coefficient. Use
α = 0.05 and r = ̶ 0.944.

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